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In the Short Run When Prices Don't Have Enough Time

Question 13

Multiple Choice

In the short run when prices don't have enough time to change, the Federal Reserve


A) can influence the level of interest rates in the economy.
B) cannot influence the level of interest rates in the economy.
C) can influence the level of interest rates in the economy but generally will not because it would be destabilizing.
D) can only affect the amount of money in the economy.

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